H&M Eyes Expansion In Ho Chi Minh City Amid Southeast Asia Growth Strategy
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The Swedish fast-fashion behemoth, H&M, is set to broaden its reach in Ho Chi Minh City, a bustling retail hotspot in Vietnam, as a crucial part of its larger growth strategy for Southeast Asia.
Expansion Plans for H&M in Vietnam
According to local sources, H&M Vietnam is actively scouting for opportunities to inaugurate new stores in the city’s prime commercial hubs. As it stands, the brand runs 14 stores throughout the country, with plans to increase this to 20 in the upcoming years. A significant emphasis is being placed on the city center of Ho Chi Minh City for these new store openings.
In order to ensure a smooth expansion, H&M is diligently navigating local lease processes and adhering to regulatory requirements.
H&M’s Growth in Vietnam and Beyond
H&M ventured into the Vietnamese market in 2017. Despite this, its store count remains small when stacked against other markets in the region, such as Malaysia, Thailand, and the Philippines.
However, it’s worth noting that the brand is experiencing a global resurgence, with its operating profit witnessing a 40 percent surge to US$523 million in this year’s third quarter. Additionally, their operating margin has also seen a rise, going up from 5.9 to 8.6 percent.
Questions & Answers
When did H&M first enter the Vietnamese market?
H&M first entered the Vietnamese market in 2017.
How many stores does H&M currently operate in Vietnam?
At present, H&M operates 14 stores across Vietnam.
What are H&M’s expansion plans in Vietnam?
H&M plans to grow its presence in Vietnam by increasing its store count from 14 to 20 in the coming years, with a particular focus on central Ho Chi Minh City.